Kenya’s National Treasury is planning a Sh2 billion ($15 million) Child Welfare Fund aimed at helping thousands of minors transition from institutional care into family-based environments, according to reports by Kenyan media.
The fund, expected to be included in the 2026–27 national budget, would support children currently living in residential care institutions such as orphanages and children’s homes. Officials say the goal is to help reunite them with relatives, place them in foster families, or support independent living arrangements for older youth leaving care.
The proposal forms part of Kenya’s broader effort to reform its child welfare system and gradually reduce reliance on institutional care.
Government data shows that more than 44,000 children currently live in registered children’s homes across the country.
While such institutions have historically been viewed as safe havens for orphaned children, research over the past two decades has increasingly shown that institutional settings can hinder emotional and social development.
Child welfare experts say many children living in orphanages are not actually orphans. UNICEF reports that most children in residential care still have at least one living parent and are often placed in institutions because families are struggling with poverty, disability or other challenges.
The Kenyan government’s new strategy seeks to address those underlying problems.
Under the proposed Child Welfare Fund, money would be directed toward family-strengthening programs, counselling services, tracing relatives and reintegrating children into communities.
The initiative would also support foster care systems and programs designed to help teenagers transition into adulthood. Officials say the goal is to ensure children grow up in stable family environments whenever possible.
Kenya’s plan reflects a broader international movement that is drifting away from orphanages to family-based care.
Organizations such as UNICEF and global child welfare networks have for years advocated for “deinstitutionalization,” arguing that children generally thrive best in family settings.
Studies have linked long-term institutional care to developmental delays, attachment disorders and mental health challenges later in life. Research including the Bucharest Early Intervention Project, the first randomized trial comparing foster care and institutional care, found significantly higher rates of developmental and attachment problems among children raised in institutions.
As a result, many countries are gradually replacing orphanages with foster care systems, kinship care arrangements or community-based support programs.
The government’s National Care Reform Strategy outlines plans to transition children out of residential institutions by 2032 while strengthening systems that support families.
The shift is likely to affect churches and Christian charities that have historically played a major role in supporting orphanages across Africa.
In recent years, however, a growing number of faith-based organizations have begun rethinking the traditional orphanage model. Research by the Faith to Action Initiative has urged churches and ministries to shift their efforts from supporting children in orphanages toward strengthening families and family-based care.
Groups involved in child welfare advocacy have increasingly encouraged churches to focus on keeping families together whenever possible, rather than relying primarily on institutional care.
Faith-based networks such as the Faith to Action Initiative and the Better Care Network have promoted approaches that emphasize family preservation, foster care and community support.
These organizations argue that churches are uniquely positioned to help struggling families by offering mentorship, financial assistance and community support systems that prevent children from entering institutions in the first place.
In Kenya, many churches already run community programs that provide food support, school fees assistance and counselling to families in crisis. Children’s homes have long filled gaps in Kenya’s social support systems, particularly in areas where poverty levels remain high.
Moving thousands of children into family environments will require strong oversight, well-trained social workers and adequate funding for foster care and family support services.
The government’s proposed fund is intended to help address some of those needs.
As Kenya moves forward with its proposed Child Welfare Fund, the challenge will be ensuring that the transition away from institutional care results in safer, more stable homes for the country’s most vulnerable children.
